MARTIN de TOURS SCHOOL OF MANAGEMENT

DEPARTMENT OF MARKETING

LESSON PLAN
MKT4809
Marketing for service

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MKT4809 MARKETING FOR SERVICE
LESSON PLAN

COURSE DESCRIPTION

A study of nature and characteristics of market and consumer behavior for various
services; marketing mix for services; structure and development of institutions involved
in selling services such as financial institution, banks insurance companies,
transportation firms, hotels and various travel industry agencies. The course also covers
the comparison between marketing for goods and marketing for services

COURSE OBJECTIVES

• Fully appreciate the key issues and challenges, which face managers involved in
the marketing of services.
• Understand the unique characteristics of service organizations.
• Distinguish the role of the service provider and the consumer in the production of
services.
• Develop the ability to apply appropriate services marketing approaches with an
intention of attracting, retaining and maximizing customer’s levels of satisfaction.
• Identify and evaluate opportunities for the application of services marketing
principles in the service organizations.

MARK ALLOCATION

In-class participation 5%
Case study analysis and Workshop 10%
Individual Presentation 5%
Group project 20%
Midterm Examination 25%
Final Examination 35%
Total 100%

Page 2 of 18
 Lesson 1: Introductions for services marketing (Textbook Chapter 1)

Time Allocation: 3 hrs

Recommended
Workshop/ Strategy
Chapter Learning Objective Contents insight / Case
Study

1
Explain what What are services

services are and  Services industries, Services as Case Study
identify important products, Customer services ,Derived
trends in services services -Southwest airlines:
 Tangibility Spectrum Aligning people,

Explain the need for process, and
special services Why service marketing physical evidence
marketing concepts  Service-Based economies
and practices and  Service as a business imperative in Workshop
why the need has manufacturing and IT
developed and is  Deregulated industries and -What are the basic
accelerating professional service needs characteristics of
 Services marketing is Different services and goods?

Explore the  Service equal profits
profound impact of  But “Service Stinks” -What are the
technology on implication of these
service Service and Technology characteristics for
 Potential for new service offerings Service industry and

Outline the basic  New ways to deliver service give example?
differences between  Enable both customers and employees
goods and services  Extending the global reach of services -How can quality
and the resulting  The internet is a service service be used in a
challenges and Southwest airline for
opportunities for Characteristics of services compared to competitive
service businesses. goods advantage?
 Intangibility

Introduce the  Heterogeneity
expanded marketing  Simultaneous production and
mix for services and consumption
the philosophy of  Perishability
customer focus, as
powerful Services marketing mix
frameworks and  Traditional marketing mix
themes.  Expanded mix for services

. Self-Study
 Trend in the service sectors
 Challenges and questions for service
marketers

Page 3 of 18
 Lesson 2: The gaps model of service quality (Textbook Chapter 2)

Time Allocation: 1.5 hrs

Recommended
Workshop/ Strategy
Chapter Learning Objective Contents insight / Case
Study

2
Introduce a The customer gap Workshop

framework, called  Expected service
the gaps model of  Perceived service -Use the Internet to
service quality, locate the Amazon
which is used to The provider Gaps (www.amazon.com).
organize  Provider Gaps 1 :Not knowing what Which provider gaps
customer expect has the company

Demonstrate that  Provider Gaps 2 :Not having the right closed? Explain.
the gaps model is a service quality designs and standards
useful framework for  Providers Gap 3 :Not delivering to -If you were the
understanding service designs and standards manager of an
service quality in an  Provider Gap 4 :Not Matching Amazon and wanted
organization performance to promises to apply the gaps
model to improve

Demonstrate that Closing the gaps service, which gap
the most critical would you start with?
service quality gap Why? In what order
to close is the would you proceed to
customer gap, the close the gaps?
difference between
customer
expectations and
perception

Show that four gaps

that occur in
companies, which
we call provider
gaps are
responsible for the
customer gap

Identify the factors

responsible for each
of the four provider
gaps

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 Lesson 3: Consumer behavior in service (Textbook Chapter 3)

Time Allocation: 1.5 hrs

Recommended
Workshop/ Strategy
Chapter Learning Objective Contents insight / Case
Study

3
Enhance Search, Experience, and Credence Workshop

understanding of properties
how consumers -Define consumer
choose and Consumer choice behavior of your
evaluate service,  Need recognition service company
through focusing on  Information search
factors that are  Evaluation of service alternatives -Experience the
particularly relevant  Service purchase service firsthand if
for services possible and observe
Consumer experience other customers for a

Describe how  Service as process period of time.
consumers judge  Service provision as drama Describe the
goods versus  Service role and scripts consumer
services in terms of  The compatibility of service customers experience in detail
search, experience,  Customer coproduction in terms of what
and credence  Motion and mood happened throughout
criteria the process and how
Postexperience evaluation customers felt about

Develop the  Word-of-mouth communication it. How could the
elements of  Attribution of dissatisfaction service experience
consumer behavior  Positive or negative bias be improved?
that a services  Brand loyalty
marketer must
understand: choice Understanding differences among
behavior, consumer consumers
experiences, and  Global differences
postexperience
evaluation Group decision making
 Household

Explore how  Organization
differences among
consumers (Cultural
differences, group
decision
making)affect
consumer behavior
and influence
service marketing
strategies

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 Lesson 4: Customer expectation of service (Textbook Chapter 4)

Time Allocation: 3 hrs

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Chapter Learning Objective Contents insight / Case
Study

4

Recognize that Meaning and types of service expectations Workshop
customers hold  Expected service : Levels of
different types of expectations -Define customer
expectations for  The zone of tolerance expectation of your
service performance service company
Factors that influence customer

Discuss the sources expectations of service
of customer  Source of desired service expectations
expectations of  Sources of adequate service
service, including expectations
those that are  Service encounter expectations versus
controllable and overall service expecations
uncontrollable by  Source of both desired and predicted
marketers service expectations

Acknowledge that Self-Study

the types and
sources of Issues involving customer service
expectations are expectations
similar for end  What does a services marketer do if
consumers and customer expectations are
business customers, “unrealistic”?
for pure service and  Should a company try to delight the
product-related customer?
service, for  How does a company exceed
experienced customer service expectations?
customers and  Do customer service expectations
inexperienced continually escalate?
customers  How does a service company stay
ahead of competition in meeting

Delineate the most customer expectations?
important current
issues surrounding
customer
expectations

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 Lesson 5: Customer perceptions of service (Textbook Chapter 5)

Time Allocation: 3 hrs

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Workshop/ Strategy
Chapter Learning Objective Contents insight / Case
Study

5
Provide a solid Customer Perceptions Case Study

basis for  Satisfaction Versus Service Quality www.Amazon.com
understanding what  Transaction versus Cumulative
influences customer Perception Workshop
perceptions of
service and the Customer Satisfaction? -Visit Amazon.com ’s
relationships among website. Visit a
customer What determines customer satisfaction? traditional bookstore.
satisfaction, service  Product and Service Features How would you
quality, and  Consumer Emotion compare the two
individual service  Attributions for service success or experiences?
encounters. failure Compare and
 Perception of equity or fairness contrast the factors

Demonstrate the  Other consumers, family members, that most influenced
importance of and coworkers satisfaction and
customer perceptions of
satisfaction- what it Service Quality service quality in the
is, the factors that  Outcome, Interaction, and Physical two different
influence it, and the Environment quality situations. When
significant outcome  Service Quality Dimensions would you choose to
resulting from it. - Reliability use one versus the
- Responsiveness other?

Develop critical - Assurance
knowledge of - Empathy
service quality and - Tangible
its five key
dimensions: E-Service Quality
reliability,
responsiveness, Service Encounters : The building Blocks
empathy, for customer perception
assurance, and  Service Encounters or Moments of
tangibles truth
 The importance of Encounter

Show that service  Types of Service Encounters
encounters or the  Sources of Pleasure and Displeasure
“moments of truth” in Service Encounter
are the essential  The evidence of service
building blocks from
which customers Self-Study
form their
perceptions National Customer Satisfaction Index
The American customer satisfaction index

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 Lesson 6: Listening to customers through research (Textbook Chapter 6)

Time Allocation: 3 hrs

Recommended
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Chapter Learning Objective Contents insight / Case
Study

6
Present the types of Using marketing research to understand

and guidelines for customer expectation
marketing research  Research objectives for service Workshop
in services  Criteria for an effective services
research program -Define the problem

Show how and research
marketing research Elements in an effective services marketing objectives.
information can and research program
should be used for  Complaint solicitation -Create
services  Critical incidents studies questionnaire of your
 Requirement research service company by

Describe the  Relationship and SERVQUAL surveys using SERVQUAL
strategies by which  Process Checkpoint evaluation scale
companies can  Mystery shopping
facilitate interaction -Define type of
and communication Analyzing and interpreting marketing survey
between research finding
management and  Tracking of performance, Gap Scores,
customers. and Competition
 Zones of tolerance charts

Present ways that  Important/ Performance matrices
companies can and
do facilitate Self-study
interaction between -Model service marketing research programs
contact people and -Using marketing research information
management -Upward communication

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 Lesson 7: Building customer relationships (Textbook Chapter 7)

Time Allocation: 1.5 hrs

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Chapter Learning Objective Contents insight / Case
Study

7
Explain relationship Relationship marketing Workshop

marketing, its goals,  The evolution of customer
and the benefits of relationships -In small groups in
long-term  The goal of relationship marketing class, debate the
relationships for firm  Benefits for customers and firms question “Is the
and customers customer always
Relationship value of customers right?” In other words

Explain why and  Factors that influence relationship are there times when
how to estimate value the customer may be
customer  Estimating customer lifetime value wrong customer for
relationship value  Linking customer relationship value to the organization?
firm value

Introduce the
concept of customer Customer profitability segments
profitability  Profitability Tiers – the customer
segments as a pyramid
strategy for focusing  The customer’s view of profitability
relationship tiers
marketing efforts Relationship development strategies
 Core service provision

Present  Switching barriers
relationships  Relationship Bonds
development
strategies- including Self-study
quality core service, Relationship challenges
switching barriers,
and relationship
bonds

Identify challenges
in relationship
development,
including the
somewhat
controversial idea
that “the customer is
not always right”

Page 9 of 18
 Lesson 8 : Service recovery (Textbook Chapter 8)

Time Allocation: 1.5 hrs

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Chapter Learning Objective Contents insight / Case
Study

8
Illustrate the How customer respond to service failure Workshop

importance of  Why people do and do not complain
recovery form  Types of customer complaint actions - Define service
service failure in  Types of complainers recovery of your
keeping customers service company
and building loyalty Customers’ recovery expectations
 Understanding and Accountability

Discuss the nature  Fair treatment
of consumer
complaints and why Switching versus staying following service
people do and do recovery
not complain
Service recovery strategies

Provide evidence of  Make the service fail-safe- Do it right
what customers the first time
expect and the kind  Encourage and track complaints
of responses they  Act quickly
want when they do  Provide adequate explanations
complain  Treat customer fairly
 Cultivate relationships with customer

Present strategies  Learn from recovery experiences
for effective service  Learn form lost customer
recovery, together
with examples of Service guarantees
what does and does  Benefits of service guarantees
not work  Types of service guarantees
 When to use (or not use) a guarantee

Discuss service
guarantees- what
they are, the
benefits of
guarantees, and
when to use them-
as a particular type
of service recovery
strategy

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 Lesson 9 : Service development and design (Textbook Chapter 9)

Time Allocation: 3 hrs

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9
Describe the Challenges of service design Workshop

challenges inherent
in service design New service development - Develop service
blueprint of your

Present the stages Types of new services service company
and unique
elements of the Stages in new service development
new-service  Front-End planning
development  Implementation
process
Service blueprinting

Demonstrate the  What is a service blueprint?
value of service  Blueprint components
blueprinting and  Service blueprint examples
how to develop and  Blueprints for technology-delivered
read service self-service
blueprints  Reading and using service blueprints
 Building a blueprint

Present lessons
learned in choosing Quality function deployment
and implementing
high-performance High-performance service innovations
service innovations  Choose the right project
 Integrate new services
 Consider multiple measure of success
 Learn from major successes

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 Lesson 10: Customer-defined service standards (Textbook Chapter 10)

Time Allocation: 3 hrs

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10
Distinguish between Factors necessary for appropriate service Workshop

company-defined standards
and customer-  Standardization of service behaviors - Develop customer
defined service and actions defined standards of
standards  Formal service targets and goals your service
 Customer- not company- defined company

Differentiate among standards
one-time service
fixes and “hard and Types of customer-defined service
soft” customer standards
defined standards  Hard customer –defined standards
 Soft customer-defined standards

Explain the critical  One-time fixes
role of the service
encounter sequence Development of customer-defined service
in developing standards
customer –defined  Basing standards on the service
standards encounter sequence
 Expressing customer requirement as

Illustrate how to specific behaviors and actions
translate customer  Measuring behaviors and actions
expectations into  Adapting standards globally or locally
behaviors and  Developing customer-defined
actions that are standards
definable,  Developing service performance
repeatable, and indexes
actionable

Explain the process

of developing
customer-defined
service standards

Emphasize the
importance of
service performance
indexes in
implementing
strategy for service
delivery

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 Lesson 11: Physical evidence and the servicescape (Textbook Chapter 11)

Time Allocation: 3 hrs

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Chapter Learning Objective Contents insight / Case
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11
Explain the Physical evidence Workshop

profound impact of  What is physical evidence?
physical evidence,  How does physical evidence affect the -Find three effective
particularly the customer experience? servicescape in
servicescape, on service industry and
customer Types of servicescapes collect all forms of
perceptions and  Servicescape usage physical evidence
experiences  Servicescape complexity that the organization
uses to communicate

Illustrate differences Strategic roles of the servicescape with its customer. If
in types of  Package customers see the
servicescapes, the  Facilitator firm’s facility, also
roles played by the  Socialize take a photo of the
servicescape, and  Differentiator servicescape.
the implications for
strategy Framework for understanding servicescape -Analyze the
effects on behavior evidence in terms of

Explain why the  The underlying framework compatibility,
servicescape affects  Behaviors in the servicescape consistency, and
customer and  Internal responses to the servicescape whether it
employee behavior,  Environmental dimensions of the overpromises or
using a framework servicescape underpromises what
based in marketing, the firm can deliver.
organizational Guidelines for physical evidence strategy
behavior, and  Recognize the strategic impact of Define servicescape
environmental physical evidence of your service
psychology  Blueprint the physical evidence of company.
service

Present elements of  Clarify strategic roles of the
an effective physical servicescape
evidence strategy  Assess and identify physical evidence
opportunities

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 Lesson 12: Employees’ roles in service deliver (Textbook Chapter 12)

Time Allocation: 1.5 hrs

Recommended
Workshop/ Strategy
Chapter Learning Objective Contents insight / Case
Study

12
Demonstrate the Service culture Workshop

importance of  Exhibiting service leadership
creating a service  Developing a service culture - Develop strategies
culture in which  Transporting a service culture for managing
providing excellent emotional labor of
service to both The critical importance of service your service
internal and external employees company
customers is a way  The service triangle
of life  Employee satisfaction, customer Role-play
satisfaction, and profits

Illustrate the critical  The effect of employee behaviors on 1)Define what is
importance of service quality dimensions meant by boundary-
service employee in spanning roles, and
creating customer Boundary-Spanning Role discuss the basis
satisfaction and  Emotional labor purposes or
service quality  Source of conflict functions performed
 Quality/ productivity trade-offs by participants in

Identify the these roles
challenges inherent Strategies for delivering service quality
in boundary- through people 2) Discuss two of the
spanning roles potential conflicts
 Hire the right people that you employees

Provide examples of  Develop people to deliver service may face on the
strategies for crating quality basis of their role
customer-oriented  Provide needed support systems boundary spanners.
service delivery  Retain the best people
through hiring the
right people, Customer-oriented service delivery
developing
employees to
deliver service
quality, providing
needed support
systems, and
retaining the best
service employees.

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 Lesson 13: Customers’ roles in service delivery (Textbook Chapter 13)

Time Allocation: 1.5 hrs

Recommended
Workshop/ Strategy
Chapter Learning Objective Contents insight / Case
Study

13
Illustrate the The importance of customers in service Workshop

importance of delivery
customers in  Customer receiving the service - Develop strategies
successful service  Fellow customer for enhancing
delivery and customer
cocreation of Customers’ roles participation of your
service experiences  Customers as productive resources service company
 Customers as contributors to service

Discuss the variety quality and satisfaction
of roles that service  Customer as competitors
customers play:
productive Self-service technologies- The ultimate in
resources for the customer participation
organization;  A proliferation of new SSTs
contributors to  Customer usage of SSTs
quality and  Success with SSTs
satisfaction;
competitors. Strategies for enhancing customer
participation

Explain strategies  Define customers’ jobs
for involving service  Recruit, Educate, and Reward
customers customers
effectively to  Manage the customer mix
increase both
quality and
productivity

Page 15 of 18
 Lesson 14: Manage demand and capacity (Textbook Chapter 15)

Time Allocation: 1.5 hrs

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15
Explain the The underlying issue: lack of inventory Workshop

underlying issue for capability
capacity- Explain the
constrained service: Capacity constraints underlying pattern of
lack of inventory  Time, Labor, Equipment, Facilities demand fluctuation
capability  Optimal versus Maximum use of that is likely to occur
capacity at your service

Present the company.
implications of time, Demand pattern
labor, equipment,  The charting of demand patterns
and facilities  Predictable cycles
constrains  Random demand fluctuations
combined with  Demand patterns by market segment
variations in
demand pattern Strategies for matching capacity and
demand

Lay out strategies  Shifting demand to match capacity
for matching supply  Adjusting capacity to meet demand
and demand  Combining demand and capacity
through (a) shifting strategies
demand to match
capacity or (b) Waiting line strategies : when demand and
adjusting capacity to capacity cannot be matched
meet demand  Employ operational logic
 Establish a reservation process

Demonstrate the  Differentiate waiting customers
benefits and risks of  Make waiting fun, or at least tolerable
yield management
strategies in forging Skip
a balance among Customer-oriented service delivery
capacity utilization,  Yield management: balancing capacity
pricing, market utilization, pricing, market
segmentation, and segmentation, and financial return
financial return  Implementing a yield management
system
 Challenges and risks in using yield
management

Page 16 of 18
 Lesson 15: Pricing of services (Textbook Chapter 17)

Time Allocation: 1.5 hrs

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Chapter Learning Objective Contents insight / Case
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17
Discuss three major Three key ways that service prices are Workshop
ways that service different for consumers
prices are perceived  Customer knowledge of service prices -Identify the pricing
differently from  The role of nonmonetary costs base and the
goods prices by  Price as an indicator of service quality strategy of your
customers service company
Approaches to pricing services

Articulate the key  Cost based pricing
ways that pricing of  Competitive based pricing
services differs from  Demand based pricing
pricing of goods
from a company’s Pricing strategies that link to the four value
perspective definitions
 Pricing strategies when he customer

Demonstrate what means “Value is low price’
value means to  Pricing strategies when the customer
customers and the means “Value is the quality I get for
role that price plays the price I pay”
in value  Pricing strategies when the customer
means “Value is all that I get for all that

Give examples of I give”
pricing strategy in
action

Page 17 of 18
 Lesson 16: Integrated services marketing communications (Textbook Chapter 16)

Time Allocation: 3 hrs

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Study

16
Discuss the key The need for coordination in marketing Workshop

reasons for service communication
communication  Inadequate management of service - Find five effective
challenges promises service
 Inadequate management of customer advertisements in

Introduce the expectations newspapers and
concept of  Inadequate customer education magazines.
integrated service  Inadequate internal marketing According to the
marketing communication criteria given in this
communications chapter. Identify why
Four categories of strategies to match they are effective.

Present four ways to service promises with delivery Critique them using
integrate marketing  Manage service promises the list o criteria, and
communications in  Manage customer expectations discuss ways they
service  Improve customer education could be improved
organizations  Manage internal marketing
communication -Identify marketing

Present specific communication of
strategies for your service
managing promises, company
managing customer
expectations,
educating customer,
and managing
internal
communications

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